Rupert Murdoch's Fox empire is placing a $22bn bet that the future of television lies in combining live sports and news with the world's biggest streaming platform for smart TVs. The deal to buy Roku, announced on Monday, will create the third-largest player in US TV by share of viewing, and is a clear sign that even the most powerful cable TV companies see the writing on the wall: audiences are moving online, and the companies that control the screens and the data will win.
Fox is buying Roku in a cash-and-stock deal valued at about $22bn (£16bn). Roku is the biggest streaming platform for smart TVs in the US, running on more than a quarter of internet-connected devices, according to research firm Park Associates. Globally, more than 100 million households stream with Roku. The offer of $160 per share is made up of $96 in cash and about 0.97 Fox Class A shares. Fox shareholders will own roughly 73% of the combined company; Roku investors will hold the rest. The boards of both companies have unanimously approved the transaction, which is expected to close in the first half of 2027 and generate about $400m in annual cost savings.
“Fox's $22bn acquisition of Roku explained: what the deal means for streaming, TV, and UK viewers.”
Fox has been pivoting towards live news and sports since 2019, when it reoriented the company around those two pillars after selling most of its entertainment assets to Disney. In 2020, it acquired Tubi, a free ad-supported streaming service. But its streaming presence has remained limited compared to giants like Netflix and Amazon. Roku, on the other hand, started as a hardware company making streaming devices and has become the operating system of choice for many smart TVs. It doesn't just offer its own Roku Channel; its platform gives users access to apps like Netflix, Amazon Prime, YouTube and many others. Roku's business is largely driven by advertising – $613m in the first quarter alone, up 27% year-on-year – and by taking a cut of subscriptions sold through its platform. By buying Roku, Fox gains not just a streaming service but the entire distribution platform, plus valuable data on viewing habits.
For UK readers, this deal might feel like an American corporate story, but it has direct consequences for how TV and advertising work here. Roku is also big in the UK, powering smart TVs from various brands. The combined Fox/Roku will have more negotiating power with content providers and advertisers, and the trend it represents – the merger of content and platform – could accelerate similar moves in Europe. The deal also signals that ad-supported streaming (like ITVX or Channel 4's All 4) is becoming the dominant model, as Fox's move is a bet that pairing premium live content with a free, ad-funded platform will attract the biggest audiences. Advertisers are already shifting spending: consultancy Madison and Wall predicts $20bn of ad spending on streaming by 2029, almost as much as traditional TV.
Q: Why is Fox buying Roku? Fox wants to combine its live sports and news programming with Roku's streaming platform and user base of over 100 million households. This gives Fox greater control over how its content is discovered, what data it collects, and how it sells advertising, at a time when TV viewing is shifting away from traditional cable.
Q: What does Roku do? Roku makes streaming devices and smart TV operating systems that give users access to apps like Netflix, Amazon Prime, and its own free channel. It is the biggest streaming platform for smart TVs in the US and also operates in the UK. Its revenue comes mainly from advertising and a share of subscriptions sold through its platform.
Q: How will this affect streaming services like Netflix? The deal creates a third major player in US streaming, behind Netflix and Amazon. By combining Fox's content (sports, news, Tubi) with Roku's platform, the new company will compete for viewers and advertisers. It may lead to more exclusive content deals and changes in how apps are promoted on Roku's home screen.
What happens next: The deal must still pass regulatory scrutiny and is expected to close in the first half of 2027. Fox plans to fund the cash portion through new debt and cash on hand. Investors will watch for how the combined entity integrates Roku's platform with Fox's content and Tubi, and whether it can achieve the promised $400m in annual cost savings.